Asheville Wrongful Foreclosure Victims Slow to See Promised Results

May 3, 2012

Asheville wrongful foreclosure victims had been promised recompense after a federal government cracked down on foreclosure abuses by some of the top financial companies in the industry.

But our Asheville wrongful foreclosure attorneys know that not only have those payments not been shelled out, many of the mandated reforms have yet to be enacted. That means there continues to be cases of wrongful foreclosure in Asheville, as well as other foreclosure problems throughout North Carolina and across the country.

What’s more, regulators from the Office of the Comptroller of Currency and the Federal Reserve have not yet agreed on whether the people for whom it was agreed would receive some sort of payment should be stripped of their right to sue those banks. So while the bureaucracy continues to bog down the process, North Carolina families are left in limbo.

These issues are separate from the $25 billion foreclosure abuse settlement that was agreed upon by attorneys general for 49 states and the top five banks. In that settlement, people who were removed from their homes by banks that didn’t have the proper paperwork to prove ownership were to be paid an estimated sum of about $2,000 each. This would be barely enough to cover the cost of moving, and is clearly not adequate “compensation” for these wrongful foreclosures.

Of course, that red-tape can be maddening – particularly to those who are currently enduring the process. It’s made all the more frustrating by financial institutions that employ shady tactics that have become well-known at this point – including simply not returning borrower phone calls or giving a confusing run-around. This is where a skilled foreclosure attorney can help cut through the legal mess and help you determine where you stand and what pay-outs and other options may be available to you.

Additional federal investigations are ongoing; The Federal Reserve just ordered Morgan Stanley to comb through the foreclosures of one of its subsidiaries, saying fines against the financial giant are likely.

Another detail that is upsetting, though not surprising if you’ve been following the foreclosure abuses, is that the banks are paying more in their reviews of who should get foreclosure abuse pay-out money than what they are likely to actually give back to consumers. In fact, according to The Wall Street Journal, three of the biggest banks are shelling out nearly $50 million every month – each – on attorneys, auditors and other costs associated with the review. A bank spokesman was quoted as saying that such reviews are indeed expensive, but necessary to figuring out who may justifiably deserve a pay-out and who doesn’t.

This is another reason why you need a skilled foreclosure attorney at your side, fighting for your best interests. These financial institutions have very deep pockets, and won’t hesitate to go to great lengths to fight every single claim – regardless of the legal strength or weakness of a case.